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Sale-Leaseback
- In lease
purchase agreements, the property can be new or used. It is sold
to a lease company who in turn leases it back to the original
owner or the intended buyer. The lease purchase agreement can be
used for the acquisition of equipment, real estate and entire
businesses as part of acquisition financing. For example, if
sufficient closing funds are not obtainable through normal
borrowing methods, it is possible to sell the used equipment to
a leasing company and then lease it back. This capital is then
available to the original seller of the business. |
